Financial Performance Highlights - H1 FY27

Revenue Performance:

  • Total H1 FY27 revenue: ₹98 crore
  • Revenue breakdown by segment:
  • Technology/platform fees: ₹7.5 crore (50% YoY growth)
  • Reward redemption: ₹36 crore (25% YoY growth)
  • Merchant promotion: ₹5 crore+ (37% YoY growth)
  • Digital vouchers: ₹49 crore (45% YoY growth)
  • Overall growth rate: Approximately 35-40% year-on-year
  • EBITDA margins and PAT margins showed improvement compared to previous periods

Historical Comparison:

  • H1 FY26 revenue: ₹71 crore
  • H2 FY26 revenue: ₹56 crore
  • Company has shown consistent growth over past 3-4 years

Business Updates and Strategic Developments

International Expansion:

  • Dubai subsidiary established with complete setup process finalized
  • 3 experienced professionals hired in Dubai
  • Access to GCC markets obtained
  • Two African banks onboarded through partners (Bank of Abyssinia and Bank of Sparkle)
  • $200,000 revenue already generated from Africa
  • $100,000 revenue generated from Saudi clients
  • Revenue expectations: ₹7-8 crore from international markets in FY27, ₹12-15 crore from Middle East in FY28
  • Pitches underway for US and Australian markets

AutoPay Acquisition:

  • Signed SPA to acquire 80.87% stake in AutoPay Payment Solutions
  • Acquisition value: Approximately ₹130 crore
  • AutoPay financials: FY26 revenue ₹102 crore, PAT over ₹14 crore
  • PAT margins declined from 21.9% to 13.8% due to R&D investments in DMRC business
  • Expected sustainable margins: 17-20%
  • Funding structure: 20% through share swap, ₹40 crore from internal accruals/IPO proceeds, ₹40-45 crore through preferential round in June 2027
  • Strategic rationale: Access to payment technology, PPI license potential, transit payment capabilities

Product Development:

  • AI transformation initiative with 12 specialized AI agents
  • Noxcy AI platform revamp
  • AI capabilities integrated into enterprise platform (not charged separately currently)
  • Expected breakeven on Noxcy AI investment: 1.5-2 years
  • 90% clients using SaaS model, 10% on-premise

Client Developments:

  • Central Bank of India onboarding with contract value of ₹88 crore over 5 years
  • Expected revenue breakdown: 10% technology revenue (₹8.8 crore), 90% redemption revenue
  • Net revenue expected: ₹25 crore over contract period
  • NPCI relationship ongoing for 5-6 years, handling RuPay credit card programs
  • Nova Nordisk program running in Oman, Qatar, Bahrain with plans to expand to 30 countries

Market Context and Growth Strategy

Market Opportunity:

  • Global loyalty market: $17 billion (2025) expected to reach $51 billion by 2034 at 15% CAGR
  • Indian loyalty market: $4 billion expected to double by 2034
  • High youth adoption rates for loyalty programs

Growth Strategy:

  • Deepen BFSI penetration (currently 90-92% of business)
  • International expansion through Dubai entity
  • Product development and AI-led innovation
  • Revenue quality improvement through technology and merchant promotion focus
  • Mix of organic and inorganic growth
  • Participation in Indian Railway transit loyalty system expression of interest

Financial Guidance and Targets

Short-term Expectations:

  • H2 FY27 expected to be in line with H1 performance
  • International revenue: $400,000 from Africa, $1 million from Middle East in FY27
  • US/Australia revenue target: $1 million in FY28

Long-term Targets:

  • FY29 target: ₹500 crore consolidated revenue
  • FY30 target: ₹600-650 crore consolidated revenue
  • Organic growth expectation: 15-20% CAGR

Operational Metrics

  • 100+ enterprise customers
  • 5 crore+ end customers
  • 150 crore+ transactions processed monthly
  • Inventory increase in H1 due to work in progress (₹2 crore for NPCI and Bank of Abyssinia), unbilled redemption revenue, and voucher inventory

Competitive Landscape

Domestic Competitors: Loyalty Rewards (Bill Desk owned)

International Competitors: GIIFT, Vernost, Concilion

Management Commentary

Priority areas: BFSI deepening, AI product development, international expansion, revenue quality improvement, strategic opportunities. Company remains committed to executing priorities with discipline and building on established foundation.